welcome []...circular economy ^..an industrial economy that is producing no waste and pollution, by...

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CIRCULAR ECONOMY SOUTH WEST

All Partners Workshop – Penryn - Friday 3 March 2017

WELCOME

Professor Matt Lobley (Chair) Professor in Rural Resource Management and Director of the Land, Environment, Economics and Policy Institute, University of Exeter

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AGENDA

1.00pm Lunch 1.50pm Professor Steffen Boehm: Introducing the Research 2.00pm Mr George Eustice MP: Keynote address and Q&A session. 2.40pm Professor Mickey Howard and Dr Nav Mustafee: Process mapping methods 2.50pm Dr Lydia Vamvakeridou-Lyroudia: Ecosystem Services 3.00pm Tea/coffee break 3.10pm Group working session (Led by Professor Mickey Howard ) 3.45pm Professor Steffen Boehm: Final Remarks 4.00pm Workshop finishes

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INTRODUCING THE RESEARCH

Professor Steffen Boehm (Project Leader) Professor in Organisation and Sustainability, Exeter Business School

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What is the Circular Economy?

“A circular economy is one that is restorative and regenerative by design, and which aims to keep products, components and materials at their highest utility and value at all times…” (Ellen MacArthur Foundation)

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjh6OitjtvRAhXqBcAKHfcHAR0QjRwIBw&url=http://epnetwork.tumblr.com/post/123113312207/circular-economy-the-importance-of-re-using&psig=AFQjCNGKPqT0AiNKpKp3h3sonFgkII6w3g&ust=1485358651811652

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Our food and drinks industry

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Challenges faced by the industry

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All Partners Workshop – Exeter - Friday 10 February 2017

Can the Circular Economy help?

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Our research

• Close business engagement • An interdisciplinary approach • Tools and techniques • Motivators and barriers • Inspiring change

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The Next Steps

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GET INVOLVED!

@circularfoodSW

www.circularfood.net/contact

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KEYNOTE ADDRESS

Mr George Eustice MP Member of Parliament for Camborne, Redruth & Hayle

Minister of State for Agriculture, Fisheries and Food

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PROCESS MAPPING METHODS Implementation tools for circular business

Professor Mickey Howard

Professor of Supply Management, Exeter Business School [email protected]

Dr Navonil Mustafee

Senior Lecturer (Management Studies), Exeter Business School [email protected]

Streatham Court, Rennes Drive, Exeter, EX4 4PU

http://business-school.exeter.ac.uk/

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Objectives

• Develop clearer definition around.. • Terminology: lean, sustainability, circular economy (CE)

• To aid practitioner’s choices around tools and concepts

matched with end objectives

• Guide our discussion on methods for project

• Starter questions 1. What does circular economy mean for SME dairy & baking sector ?

2. How will CE methods, tools & concepts guide implementation?

3. What will the sector’s processes & structure look like in future?

Circular economy

“..an industrial economy that is producing no waste and pollution, by design or intention, and in which material flows are of two types, biological nutrients, designed to re-enter the biosphere safely, and technical nutrients, which are designed to circulate at high quality in the production system without entering the biosphere as well as being restorative and regenerative by design”

Source: Ellen MacArthur Foundation website (c.2012).

Lean thinking

• ‘Lean & green’ - a well established match • Seeks to eliminate waste in the workplace

• Based on ‘efficiency paradigm’

• Focus on practical implementation • Strong track record with industry since the 1990s

• Survived better than BPR or TQM

• Lean can directly engage workforce • Other tools may also be applicable e.g. Lifecycle

analysis • Limitations

• Emerged from auto sector i.e. ‘lean services’ only

latterly

• Follows waste elimination, but is this radical enough?

‘Soft’ mapping with lean workshops

• Initial familiarisation • Reviews ‘current state’ of the business – involves everyone

• Action learning-based • Requires interaction from the firm with a facilitator or academic

• Process mapping • Basically a collaborative event adapted to engage all staff from the

organization to create a ‘picture’ of process waste & related issues • Based on Value Stream Mapping (Rother & Shook 1998; Womack &

Jones 1996)

Lean methodology

1. Specify Value

2. Identify the Value Stream

3. Flow

4. Pull

5. Perfection

(Womack & Jones, 1996; 2003)

http://www.edenproject.com/



Current state map to show order fulfilment process for ‘work wear’ at ‘firm X’ (REVISED)

CMT*

Finance

Local Office

(n = 25)

Supplier

i.e Alexandra

or alternative Marketing

Students

College Department

(n = 80)

Primary stakeholder

(in bold), department

or office

Process or activity IT system / ICT Flow of data, cash,

goods or services

Key to symbols:

Inventory Potential waste

One site only 1st approval by account’t

or dept.

Budget

Holder or

signatory

Internal post

Email for approval of payment (check for quality damage..)

BH approve & sign

Check compliance to rules

Orders > than 10k

QLX Finance System

Order no generated

added to order by hand

Combination of:

Fax Post Telephone Email

Invoice

Payment to supplier by BACS or cheque

Order no generated paper copies distributed as follows :

Scan invoice for DB

Email: ‘pay..’

Delivery

Post Room

Delivery of goods by van or truck

Sign for delivery note

2 days–2 months

Packaging

Blue copy: local office Pink copy: budget holder White copy: supplier

Alternative suppliers: FWB PUMA CIS

Check logo

Equivalent carbon produced:

Effort = no. of people x hrs:

Internal process:

*Management Team

Delivery

Reduce frequency

Requisition Approval Checking Order generation

Total

Footprint

1 x 80 = 80hrs 1 x 4 = 4hrs 2 x 16 = 32hrs 2 x 16 = 32hrs 1 x 4 = 4hrs 160 total hrs

000 000 000 000 000

1 x 4 = 4hrs 1 x 4 = 4hrs

Source the goods, call, quotes etc

Staff

define need

2 wks!

Complete

Paper order

Requisition

by hand

Goods delivered by post room

CEO approve & sign

Internal post

White /pink copy of order back

to dept

Internal post or by hand

Purchasing

to approve CEO

Current

state

Future state map to show proposed generic order fulfilment process for x, c. 2011

CMT*

‘Supplier’

Finance

Primary stakeholder,

department or office Process or activity IT system or ICT

Flow of data, cash,

goods & services

Key to symbols:

Inventory Waste

Purchase system

Check

Delivery

‘Equivalent carbon’

Effort = no. of people x hrs:

Process: Delivery Requisition Approval Checking Order generation

Total

Carbon

Indicator

000 000 000 000 000

Budget

holder

Select preferred supplier

Check compliance

Budget check

Operational

planning

Local offices

Individual

Staff member

Request to purchase

000

Email order

XML confirmation?

Prompt

Sign

Future (and Circular) State

Computer Simulation

• Simulation is the process of creating computer models of a real or proposed system and performing experiments with these models.

• Advantages – “What if ?” analysis (introduction of new policy, how existing resources cope up with an increase

in the catchment area, ….)

– Faster than real systems (hours are simulated in a matter of seconds!)

– Repeatability

– Inexpensive monetarily (however, modelling requires time and reliable underlying data)

– Experiment before you implement!

– Serves as a tool for better problem understanding

• Application Areas – Healthcare (modelling of healthcare services, spread of diseases ….)

– Manufacturing (assembly lines, new factory ….)

– Infrastructure (telecommunication simulation, new airport ….)

– Etc.

Simulation Study

Example: Patient pathway

Flowchart

Cyril Evans Ward – Admission (usually one day before surgery)

Cardiac Surgery (RTT Clock Stop)

ITU(LOS: usually 12-48 hours)

Emergency Patients (%s) ?

In-House Urgent Patients (%s) ?

Ele

ctive

Pa

tie

nts

(%

s)

In-H

ou

se

Urg

en

t P

atie

nts

(%s)

Transfer Patient?Patient

Transferred to

Home Hospital

HDU(LOS: usually 24-48 hours)

Elective Patients

Cardiac Surgery

Waiting List

YES

Approx 10% (?)

NO

Ap

pro

x

90

% (

?)

Apppointment with

Cardiologist

Cardiac

Surgery

Required?

Medical

Management

Required?

YES

NO

Release Patient from

Morriston Hospital

NO

Medical

Management

Waiting List –

Dan Danino Ward

YES

Su

bse

qu

en

t

to th

e

Tre

atm

en

t

Diagnosis

Complete?

YES

NO

Fo

llo

w-o

n

Ap

po

intm

en

t

Elective Patients

First Appointment

Waiting List

Referral Received for Elective

Patients

(RTT Clock Start)

Transfer Patient?Patient

Transferred to

Home Hospital

YES

Approx % (?)

Patients

that have

undergone

Thoracic

Surgery

Referred

back to GP/

Home

Hospital

MORRISTON HOSPITAL CARDIAC UNIT

GP / Home Hospital

Re

ferr

ed

ba

ck to

GP

/Ho

me

Ho

sp

ita

l

Referral

Cyril Evans Ward – Discharge (including Bracelet Bay)

(LOS: 24-48 hours)

NO

Ap

pro

x

90

% (

?)

CARDIAC SURGERY

PATHWAY

MEDICAL

MANAGEMENT

PATHWAY

Bed Capacity Computer Simulation

Results from Computer Simulation

Value Stream Mapping Computer Model

CE

Concepts

Computer Model – Current

State Computer Model – FutureState

Process Data

Modelling

Processes

Experimentatio

n

VSM

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PROCESS MAPPING METHODS Implementation tools for circular business

Professor Mickey Howard

Professor of Supply Management, Exeter Business School [email protected]

Dr Navonil Mustafee

Senior Lecturer (Management Studies), Exeter Business School [email protected]

Streatham Court, Rennes Drive, Exeter, EX4 4PU

http://business-school.exeter.ac.uk/

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ECOSYSTEM SERVICES & MODELLING

Prof. Dragan Savic &

Dr Lydia Vamvakeridou-Lyroudia Centre for Water Systems

College of Engineering, Mathematics and Physical Sciences, University of Exeter

The Centre for Water Systems : Who we are

• Part of the multidisciplinary College of Engineering, Mathematics & Physical Sciences (CEMPS) at the University of Exeter since 1999.

• Based in Streatham Campus, Exeter, Devon • Website: www.ex.ac.uk/cws • Research interests across the water cycle:

• Hydroinformatics; • Water Systems (clean and waste water/drainage); • Environmental modelling; • System Dynamics; System thinking

• Several UK/International/EU funded Research Projects • Consultancy – wide range of projects & partners • MSc in Water Management • EPSRC Centre for Doctoral Training in Water

Informatics: WISE CDT • In this project involved in Ecosystem services & System

Dynamics Modelling

Prof. Dragan Savic Co-Director

Dr. Lydia Vamvakeridou -Lyroudia

http://www.ex.ac.uk/cws

Ecosystem Services

• Ecosystems: Systems consisting of interacting living and non-living components

• Ecosystem services are the benefits society obtains from natural and constructed ecosystems.

• Changes in ecosystem services influence all components of human well-being, including the basic needs for a good life.

• Ecosystem services categories:

• Regulating services

• Provisioning services

• Cultural services

• Well-being services

Ecosystem Services

• Ecosystems services one of the driving factors in Circular Economy schemes, linked to:

• Waste disposal • Waste re-use • Water re-use

• Resource efficiency (including recycling) along the three pathways:

• Water re-use • Energy generation from waste • Materials re-use (and waste disposal)

Ecosystem Services

• Ecosystem services have value

• Positives-We can:

• Identify them for specific systems • Model/Simulate them (conceptually and quantitatively) • Quantify them • Include them to the cost-benefit assessment of ventures/projects

• Challenges:

• Monetary values hard to assign to cost-benefit analysis • Sometimes indirectly (e.g. via Policies: Regulations/Incentives) • Complexity Modelling using Complexity Science Methodologies

System Dynamics Modelling (to be applied for this project)

Systems thinking/ Systems Dynamics Modelling

• Methodology for analysing, studying and managing complex systems

• When formal analytical methods do not exist (or are hard to apply)

• By linking feedback mechanisms (loops and iterations)

• To investigate interdependencies and causalities

• Breaking down the problem into sub-systems and sub-models

• In a way similar to the conceptual thinking of non-programmers in

suitable visual environment

Systems Dynamics Modelling/ Examples

Pancherevo

RES1 Inflow to

Pancherevo

Inflow series

<Time>

evaporation

losses

Botunetz RES2

Flow from

Pancherevo to

Botunetz

Kremikovtzi

Clean Water

Node

Clean water from

Pancherevo to

Kremikovtzi

Kremikovtzi

mine

Clean Water to KP

from mine

drinkingwater to KP

Kremikovtzi total

water (blue and

purple) Clean water

inflow to KP

Water needs

Clean water needs

mine water

drinking water

Pancherevo

clean water to

KP

KP wasted total

water

Kremikovtzi

total waste

water (red) KP waste water

produced

WWTPI

Waste water flow from

KP to WWTPI (red)

Waste water % to

WWTPI

Buffer Kremikovtzi used water

(purple)

Used water flow

to KP

Sludge pond

Flow from KP to

sludge pond (red)

Flow from WWTPI to

KP buffer (purple)

wasted treated

water from WWTPI

Purple flow to

Botunetz from

WWTPI

Purple flow from

sludge pond to

Botunetz

Purple flow from

Botunetz to KP buffer

River Lesnovska River Matitza

Evaporation/Losses

from Botunetz

Purple inflow from Sludge

pond to KP buffer

Wasted water from

sludge pond

Delay buffer

parameter

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TEA & COFFEE BREAK

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GROUP WORKING EXERCISE

Led by Professor Mickey Howard

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FINAL REMARKS

Professor Steffen Boehm

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GET INVOLVED!

@circularfoodSW

www.circularfood.net/contact

welcome []...circular economy ^..an industrial economy that is producing no waste and pollution, by...

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